Turkey Expects U.S. Tariff Reductions on Exports

Turkey's Trade Minister Omer Bolat expressed optimism that the incoming Trump administration will reduce tariffs on Turkish steel and textile exports, contributing to a rally in the Turkish lira and stock market. Following Trump's recent presidential victory, the lira strengthened to its highest level since mid-October, and Istanbul's stock index surged nearly 3%. Bolat indicated that the anticipated changes in U.S. trade policies could benefit Turkey's defense and financial sectors, especially amidst previous sanctions related to Ankara's purchase of Russian missile defenses. Investors believe that Trump's potential push for peace in conflict areas like Gaza and Ukraine could further support Turkey's economic recovery, which relies on foreign investment to combat soaring inflation. Analysts noted that Turkey may emerge relatively unscathed compared to other emerging markets under Trump's trade and immigration policies. Overall, the sentiment reflects a positive outlook for Turkey's economic relations with the U.S. as the new administration takes office.